DSC1520 SEMESTER 1 (2018) ASSIGNMENTS PACK

QUANTITATIVE MODELLING (DSC1520)
ASSIGNMENT 1
SEMESTER 1 (2018)


QUESTION 1
Find the slope of the line represented by the equation
0 = 6 + 3x − 2y.

[1]

[2]
[3] 3
[4] 2
[5] None of the above.
OPTION 2




QUESTION 2
Consider the demand function
P = 100 − 5Q,
with P being price and Q quantity. Find the price elasticity of demand when Q = 8. Is demand elastic or inelastic?
Justify your answer.


[1] εd = −1,5;demand is elastic;εd < −1
[2] εd = −0,03;demand is inelastic;|εd| < 1
[3] εd = −1,5;demand is elastic;|εd| > 0
[4] εd = 1,5;demand is inelastic;εd > 1 [5] None of the above.
OPTION 1

Page 1 of 28

, QUESTION 3
Given the demand function P = 60 − 0,2Q. What is the arc price elasticity of demand when price decreases from R50
to R40?
[1] −13
[2] 13
[3] −3
[4] 3
[5] None of the above.
OPTION 3




QUESTION 4
In the following market:
Demand function : Q = 50 − 0,1P
Supply function : Q = −10 + 0,1P
where P and Q are the price and quantity respectively. Calculate the equilibrium price and quantity.
[1] P = 300; Q = 20
[2] P = 200; Q = 30
[3] P = 20; Q = 300
[4] P = 30; Q = 200
[5] None of the above.
OPTION 1
Page 2 of 28